Inherited house causing sibling tension. What’s next?

Question: My mother owned an East Valley home for over 20 years. She recently passed away. Before she died, she recorded a 50/50 beneficiary deed for her home to me and my sister, who lives out of state. The home is worth $850,000. My sister needs money, so she wants to sell the home as soon as possible. My home is only two miles from my mother’s home, and I want to rent my mother’s home for rental income for both my sister and me. I told my sister I would do all the rental paperwork, and we could rent the home until I retire in 10 years. I now have a letter from my sister’s lawyer saying that my sister will file a partition lawsuit if I don’t agree to sell the home now. What will happen if her attorney files a partition lawsuit?

Answer: If owners of real property such as a home, an office building, or undeveloped land can’t agree on whether or not to sell the real property, a partition lawsuit to sell the property should be filed. There is basically no defense to a partition lawsuit. A superior court judge will order that the real property be sold by an appointed special commissioner (typically, a real estate broker familiar with sales of similar properties in the area).

After close of escrow, the sale proceeds will be deposited with the superior court. Usually, the sale proceeds are then divided quickly (e.g., one of the parties wants to buy a boat, and the other party owes back taxes). If there is no immediate agreement on dividing the sale proceeds, the parties should mediate with a mediator (e.g., a retired judge) selected by the parties.

Note: We have filed dozens of partition lawsuits, and all have settled at or before mediation. Otherwise, there will have to be the standard litigation, with significant legal fees for motions, depositions, and even potentially a jury trial, which could be two-plus years later, followed by the appeal.